SB 39 establishes a workgroup to develop a sustainable reimbursement rate methodology for Maryland's Certified Community Behavioral Health Clinics (CCBHCs) and Outpatient Mental Health Centers (OMHCs), directly affecting behavioral health providers facing financial strain due to outdated rates. The bill requires the Maryland Department of Health to conduct a cost study of OMHC services, form an advisory panel to review rate recommendations, and increase Medicaid reimbursement rates for OMHCs in fiscal years 2026 and 2027. Key provisions include evaluating provider costs, workforce needs, and alignment with somatic health care parity, while addressing closures like those in Frederick County. The workgroup must report findings by December 2027, aiming to stabilize provider finances and ensure continued access to community mental health care.
HB 590 renames Howard County's Agricultural Land Preservation Fund to the Agricultural Preservation and Innovation Fund and specifies how property transfer tax revenues are distributed. The bill directs 25% of transfer tax proceeds to school construction, 25% to park and watershed projects, and the remaining 50% to be split: 50% (of the remainder) for agricultural programs (including innovation to support farming sustainability), 25% for low-income housing and community improvement, and 25% for fire services. It also requires that any revenue from an increased transfer tax rate be distributed equally among school capital projects, recreation and parks capital projects, low-income housing, and fire services. The bill takes effect July 1, 2026.
SB 403 exempts sales tax on in-person book fairs held at Maryland elementary and secondary schools. It applies to sales by schools, parent-teacher organizations (PTOs), or other nonprofit groups operating these events on school premises. The exemption covers sales where students, staff, or PTO members act as agents for vendors, with all net proceeds used solely for the school's educational benefit. This bill adds a new tax exemption provision (Section 11-204(b)(9)) to Maryland’s tax code, effective July 1, 2026.
HB 654 modifies funding rules for Maryland's Heritage Areas Authority, directly affecting local jurisdictions and entities managing certified heritage areas. It removes previous 50% limits on grant coverage for project costs (allowing full funding for eligible activities like preservation and marketing) and adjusts how Program Open Space funds are used. Specifically, it increases the allowable percentage for operating expenses from 10% to 7% or $600,000 (whichever is greater), and raises the maximum funding transfer to the Authority's Financing Fund. These changes aim to provide greater flexibility for heritage area management while maintaining oversight of fund usage.
SB 163 modifies Maryland's income tax calculation by removing a requirement to include certain foreign earned income in taxable income. It specifically exempts income that qualifies for exclusion under federal law (IRS Section 911), such as earnings from work abroad that are already excluded from federal taxes but would otherwise be added to Maryland taxable income. This change directly affects Maryland residents earning qualifying foreign income who currently face state taxation on that income. The bill amends Maryland tax code sections 10-204(a) and 10-204(c)(1)(I) and takes effect for taxable years beginning after December 31, 2025.
SB 756 creates a tax exemption for certain new or rehabilitated commercial or residential developments in Baltimore City's Downtown RISE District (specifically Wards 4 and 22 precincts), replacing property taxes with annual "payment in lieu of taxes" agreements. Property owners must enter a formal agreement with Baltimore City by June 30, 2036, after demonstrating the project's economic necessity through a city-approved analysis. The bill requires annual reporting on job creation, estimated tax revenue, and other economic benefits of qualifying projects. This applies only to developments including hotels, offices, retail, multifamily housing, or mixed-use facilities within the defined district.
SB 860 establishes the Aging Resilience Fund, a dedicated, nonlapsing fund administered by Maryland's Department of Aging. The fund is designed to support the department's mission by covering administrative costs like personnel, partnership development, and senior-focused programs. Interest earnings from the fund must be reinvested into the fund itself, and money can only be spent following state budget rules. This bill directly affects the Department of Aging's operations and senior services programs in Maryland.
SB 43 repeals a $25 fee charged to banking institutions for certificate of valid charter requests and extends the deadline for the Commissioner to match investments in the Maryland Community Investment Venture Fund from 2028 to 2030. The bill revises the Fund’s purpose to focus on developing financial products and services for low-to-moderate-income communities through investments, grants, and innovation testing. It also updates assessment credit rules for banking institutions and credit unions, alters the definition of "emergency" for banking closures, and clarifies the Fund’s status as a nonlapsing state fund. These changes directly affect Maryland banking institutions, credit unions, and residents in low-to-moderate-income areas seeking improved financial services.
SB 440 extends the expiration date of Maryland's theatrical production tax credit from 2027 to 2032. This credit allows theater producers to claim a refundable tax credit against state income tax for qualifying production costs within the state. The bill amends existing law (Chapter 258 and 259 of the 2022 Acts) to change the sunset date from June 30, 2027, to June 30, 2032, without requiring further legislative action. It directly affects theater companies and productions that meet the credit's eligibility criteria in Maryland.
SB 262 expands Maryland's income tax deduction for teachers by adding prekindergarten teachers to the list of eligible educators who can deduct up to $250 annually for unreimbursed classroom supply expenses. The bill amends tax code sections to include prekindergarten classroom teachers employed full-time in state programs as "eligible teachers," alongside existing K-12 teachers. This deduction applies only to supplies used by students or for teaching preparation, and excludes expenses already deducted federally. The change takes effect for taxable years beginning after December 31, 2025.
